The Developer's Digest, Jan - Mar 2018 Issue
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<strong>The</strong> Developer’s<br />
<strong>Digest</strong><br />
A Publication by the Kenya Property Developers Association<br />
JANUARY - MARCH <strong>2018</strong> ISSUE<br />
TOPIC OF THIS ISSUE:<br />
Best Practices in the Kenyan<br />
Construction Sector: What Every<br />
Investor Should Know
KPDA Koroga Event<br />
<strong>The</strong> Developer’s<br />
<strong>Digest</strong><br />
A Publication by the Kenya Property Developers Association<br />
JANUARY - MARCH <strong>2018</strong> ISSUE<br />
3<br />
26<br />
Invitation to the KPDA Corporate Networking<br />
KOROGA Event<br />
#KorogaNaKPDA<br />
Friday 4 th May <strong>2018</strong> at the Spice Roots Restaurant, Nairobi<br />
An interactive and informal networking event!<br />
WHERE: Spice Roots Restaurant<br />
(Located along Forest Rd, Nairobi)<br />
WHEN: Friday, 4 th May <strong>2018</strong><br />
TIME:<br />
6.00pm onwards<br />
<strong>The</strong> Koroga will run from 6.00pm onwards. Drinks will be<br />
served at a cash bar.<br />
Message from the CEO<br />
Focus on Policy<br />
1<br />
3<br />
Have Your Say 13<br />
KPDA Directory of Members 17<br />
NCCG Building Permitting Approvals 42<br />
Fatima Flats, Suite 4B<br />
<strong>Mar</strong>cus Garvey Road<br />
Off Argwings Kodhek Rd<br />
Nairobi, Kenya<br />
Tel: + 254 737 530 290<br />
+ 254 705 277 787<br />
Email: admin@kpda.or.ke<br />
Website: www.kpda.or.ke<br />
KPDA SECRETARIAT<br />
Chief Executive Officer<br />
Elizabeth Mwangi – Oluoch<br />
Membership Relations Officer<br />
Cynthia Wakio<br />
Finance and Membership Support Officer<br />
Grace Hinga<br />
Finance and Administrative Assistant<br />
<strong>Mar</strong>vin Kamata<br />
Research Support Intern<br />
Powell Gwena<br />
36<br />
KPDA BOARD MEMBERS<br />
TICKETS FOR THE KOROGA (AUTOMATIC ENTRY INTO THE<br />
RAFFLE COMPETITION)<br />
Members Kshs. 2, 900 (incl. of VAT)<br />
Non Members Kshs. 4, 060 (incl. of VAT)<br />
THE DEADLINE TO RSVP (WITH PAYMENT) IS MONDAY 30 TH APRIL <strong>2018</strong>. Kindly send your<br />
confirmations to membership@kpda.or.ke and cc finance@kpda.or.ke.<br />
NB:<br />
- Please note that registration fees once paid are non-refundable and cannot be transferred<br />
to cater for the cost of attending future events.<br />
- Participants who attend this event without an RSVP will be surcharged at the door<br />
- Non Members will not be allowed to participate in this event without prior payment<br />
- Cancellations are only refundable if the secretariat is notified on email by no later than<br />
Friday, 27 th April <strong>2018</strong><br />
Britam Centre, Upper Hill.<br />
DESIGN AND LAYOUT<br />
InsyncMEDIA Limited<br />
Devan Plaza . 1 st Floor . Suite 16<br />
Chiromo Road, Waiyaki Way .<br />
Westlands . Nairobi . Kenya<br />
P.O. Box 9510 - 00100<br />
Nairobi . Kenya<br />
Landline: (+254) 0775551090<br />
Email: info@insyncmedia.co.ke<br />
INSYNC<br />
MEDIA<br />
LIMITED<br />
Mucai Kunyiha<br />
Chairman<br />
Kenneth Luusa<br />
Board Director<br />
Palkesh Shah<br />
Board Director<br />
Gikonyo Gitonga<br />
Board Director<br />
Emma Achoki<br />
Treasurer<br />
<strong>Mar</strong>garet Kibe<br />
Board Director<br />
George Wachiuri Caroline Karugu<br />
Board Director Board Director<br />
Anne Muchiri<br />
Board Director<br />
Hamish Govani<br />
Immediate Past Chairman<br />
Ravi Kohli<br />
Board Director<br />
Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />
Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible
1 2<br />
Message from the CEO<br />
5<br />
Happy Belated International<br />
Women’s Day! ~ (8th <strong>Mar</strong>ch <strong>2018</strong>)<br />
I am about one month late, but better late than never.<br />
Magazine<br />
A painting by Julie Dillon - <strong>The</strong> daughter<br />
of the daughter of my daughter.<br />
KPDA wishes to<br />
welcome our<br />
newest members:<br />
• Akarora Ltd<br />
• Amazon Projects Ltd<br />
• Amboseli Court Ltd<br />
• Dahua Technology Kenya Ltd<br />
• Fairdeal Developments and Infrastructure Ltd<br />
• Golden Compass Ltd<br />
• Hazelnut Kenya Ltd<br />
• Kitchens and Beyond Ltd<br />
• KumKang Kind East Africa Ltd<br />
• Mlima Construction Company Ltd<br />
• Sohail Developers Ltd<br />
• Turner & Townsend<br />
• Username Investments Ltd<br />
Welcome to the<br />
KPDA Family!<br />
Welcome to the first issue of <strong>The</strong> Developer’s <strong>Digest</strong><br />
for the year <strong>2018</strong>. We apologize that we were unable to<br />
publish an issue in the last quarter of 2017 and hence<br />
our last issue was for the period July to September 2017.<br />
That being said, this issue is therefore packed within<br />
even more information, facts, articles of interest and<br />
updates on the Association. First on our agenda is<br />
to invite you to our upcoming AGM and Corporate<br />
Networking Koroga Events planned for Friday, 4th May<br />
<strong>2018</strong>. Ensure that you attend and use the opportunity<br />
to mingle with the management of KPDA, your fellow<br />
members as well as other industry compatriots. Our<br />
Koroga events are momentous and those who have<br />
been at even one from the past can attest to this!<br />
<strong>The</strong> focus of this issue is on construction<br />
industry guidelines. Our very own member,<br />
Oraro and Company Advocates give an<br />
insightful read on ‘Best Construction<br />
Practices in Kenya.’ <strong>The</strong>re is also<br />
an interesting read penned by the<br />
Architectural Association of Kenya who<br />
give a wholistic view of our sector.<br />
As we grapple with the fact that we<br />
are almost halfway through the year<br />
(time flies too fast!), let us remember<br />
that we should always be kind to<br />
one another, even as we go about<br />
the business of our businesses<br />
(both personal and for own<br />
sustenance).<br />
Have a kindhearted and<br />
compassionate month of<br />
April.<br />
Elizabeth<br />
19 YEARS<br />
of Publication<br />
Online Advertising<br />
Log in/Register<br />
to Advertise on<br />
www.kenya-real-estate.com<br />
• Property Listings<br />
• Property Developments<br />
• Property Essentials<br />
Magazine advertising space from Kshs. 5,000<br />
Cell: 0790 406 470<br />
Email: sales@kenya-real-estate.com<br />
Advertising on www.kenya-real-estate.com from Kshs. 1,000<br />
Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible
3<br />
4<br />
Focus on Policy<br />
Focus on Policy<br />
Best Practices in the Kenyan<br />
Construction Sector: What<br />
Every Investor Should Know<br />
Recent media<br />
reports of<br />
collapsed<br />
structures, often<br />
involving the<br />
loss of life, are<br />
equally alarming.<br />
Such incidences are<br />
often attributed<br />
to poor designs<br />
and defective<br />
construction<br />
works<br />
<strong>The</strong> international publishing, research and consultancy firm Oxford Business Group<br />
recently observed in the Construction & Real Estate chapter of <strong>The</strong> Report: Kenya<br />
2017 that the construction industry has been “accelerating at a rapid pace and<br />
making a substantial contribution to the country’s strong GDP growth figure”<br />
amid rising demand for residential developments.<br />
Be that as it may, homebuyers continue to face a number of risks ranging<br />
from delays in completion and handing over of construction projects, poor<br />
and defective workmanship and encumbrances on land titles to false<br />
representations, fraud and extortion by unscrupulous developers and other<br />
actors in the real estate and construction industry.<br />
Recent media reports of collapsed structures, often involving the loss of<br />
life, are equally alarming. Such incidences are often attributed to poor<br />
designs and defective construction works but other culprits include<br />
cost-cutting and use of substandard materials, non-compliance with<br />
construction requirements, lack of quality control and incompetence.<br />
This list is not exhaustive and there are many other issues that could<br />
seriously affect the use and enjoyment of property.<br />
This begs the question: what are the remedies available to<br />
homebuyers in such cases and what steps can they take to<br />
minimize the risks?<br />
CONSUMER PROTECTION<br />
Kenyan law appreciates the Latin principle of caveat<br />
emptor, which places the onus on the buyer to uncover<br />
potential issues, and the principle of freedom of<br />
contract, which dictates that parties are free to enter<br />
into binding contracts on their own terms with limited<br />
outside interference.<br />
Nevertheless, the law acknowledges that it remains<br />
necessary to police market failures and insufficiencies such<br />
as inequalities in bargaining power between consumers and<br />
suppliers of goods and services. For instance, homebuyers<br />
may not be as sophisticated as contractors and developers in<br />
matters of construction and are therefore in need of protection.<br />
CONSTITUTION OF KENYA<br />
<strong>The</strong> Constitution of Kenya, 2010 (the Constitution)<br />
recognises that consumer rights are human rights<br />
that can be legally enforced. In particular, article<br />
46 provides that consumers have the right to<br />
goods and services of reasonable quality and the<br />
right to information necessary to gain full benefit<br />
from such goods and services. Further, consumers<br />
are entitled to the protection of their health, safety<br />
and economic interests and to compensation for<br />
loss or injury arising from defects in goods and<br />
services. This provision is considered a notable<br />
milestone for consumer protection in the country.<br />
Pursuant to these express constitutional<br />
provisions, homebuyers may sue for damages<br />
with respect to goods and services provided by<br />
financiers, estate agents, contractors and other<br />
actors in the construction industry. It should be<br />
noted, however, that the Kenyan courts have<br />
been reluctant to apply the Constitution directly<br />
to private bodies and individuals where specific<br />
legislation exists that addresses the issues raised.<br />
CONSUMER PROTECTION ACT<br />
Part II of the Consumer Protection Act, 2012<br />
(the Act) has indeed given consumers a wide<br />
range of rights, including the right to full precontractual<br />
information to enable them make<br />
informed decisions, the right to raise a complaint<br />
with regards to quality, delays in provision of<br />
rectification and the price of goods and services,<br />
and the right to cancel the agreement.<br />
Consumers are also empowered under the Act to<br />
cancel agreements and sue for damages where a<br />
service provider engages in unfair practices, which<br />
include making false, misleading or deceptive<br />
representations.<br />
Representing that goods or services have<br />
certain characteristics that they do not have or<br />
representing that goods or services are of a<br />
particular standard or quality when they are not<br />
are all considered unfair practices and in such<br />
instances, the court is expressly permitted to<br />
award exemplary or punitive damages in addition<br />
to any other remedy that will have been available<br />
to the consumer.<br />
A notice is required where the consumer intends<br />
to rescind the agreement or to seek other forms<br />
of relief. <strong>The</strong> notice can be made verbally or in<br />
writing and may be expressed in any way as long<br />
as it sets out the reasons relied upon and complies<br />
with any requirements that may be prescribed.<br />
A major benefit of the Act is that it provides<br />
a low-cost mechanism for consumers to<br />
redress any wrongs inflicted on them<br />
without the need to go to court. However,<br />
Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />
Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible
5<br />
6<br />
Focus on Policy<br />
Focus on Policy<br />
Best Practices in the Kenyan Construction Sector:<br />
What Every Investor Should Know<br />
<strong>The</strong> Act only protects consumers of goods and<br />
services.<br />
<strong>The</strong> term “consumer” includes:<br />
• A person to whom particular goods or<br />
services are marketed in the ordinary course<br />
of the supplier’s business;<br />
• A person who has entered into a transaction<br />
with a supplier in the ordinary course of the<br />
supplier’s business; and<br />
• A user of particular goods or a recipient or<br />
beneficiary of particular services, irrespective<br />
of whether that user, recipient or beneficiary<br />
was a party to a transaction concerning the<br />
supply of those particular goods.<br />
A supplier is defined as a person who is in the<br />
business of supplying goods or services and<br />
includes an agent of the supplier or any person<br />
who holds himself out to be a supplier or an agent<br />
of the supplier.<br />
Homes are not legally recognised as goods and<br />
are usually purchased from private homeowners<br />
who are not in the business of selling homes and<br />
who would therefore not qualify as suppliers.<br />
Thus, the average homebuyer may not always be<br />
able to rely on the provisions of the Act. But this<br />
is not necessarily the case where the homebuyer<br />
is dealing with professional developers who<br />
are in the business of selling properties and<br />
the agents of such developers. <strong>The</strong>re are other<br />
low-cost avenues that homebuyers may pursue<br />
under various statutes, including the National<br />
Construction Authority Act, the Estate Agents Act<br />
and the Competition Act.<br />
NATIONAL CONSTRUCTION<br />
AUTHORITY ACT<br />
<strong>The</strong> construction industry is principally regulated<br />
by the National Construction Authority Act, 2011<br />
(the Act) which provides for the establishment,<br />
powers and functions of the National Construction<br />
Authority (the Authority) and connected purposes.<br />
<strong>The</strong> Authority oversees the construction industry<br />
and coordinates its development. <strong>The</strong> Authority’s<br />
further mandate of accrediting, registering<br />
and regulating professional undertakings of<br />
contractors is aimed at ensuring that consumers of<br />
construction industry services are protected from<br />
exploitation and unfair practices.<br />
<strong>The</strong> Authority has the responsibility of detecting<br />
errant behaviours, responding to the same and<br />
enforcing the National Construction Authority<br />
regulations in the interest of justice. <strong>The</strong><br />
regulations require that contractors, whether<br />
foreign or local, be registered under the category<br />
of construction works they propose to undertake.<br />
Additionally, the National Construction Authority<br />
Act, 2011 establishes a Board of the Authority (the<br />
Board) with powers to inquire into the conduct<br />
of a contractor on its own initiative and sets out<br />
suspension conditions for contractors. Consumers<br />
may also forward complaints to <strong>The</strong> Authority for<br />
appropriate action.<br />
Such complaints are made to the Board in writing<br />
to enable the Board investigate and prosecute<br />
the case. <strong>The</strong> Board proceeds to investigate and<br />
prosecute the case. <strong>The</strong> Act also establishes the<br />
Appeals Board which makes rules concerning<br />
the filing, hearing and disposal of appeals.<br />
While parties should ordinarily exhaust all the<br />
appeal avenues under the Act before resorting<br />
to court, this does not operate to limit the court’s<br />
jurisdiction.<br />
ESTATE AGENTS ACT<br />
Another statute that polices the Kenyan<br />
construction industry is the Estate Agents Act,<br />
2010, (the Act). <strong>The</strong> Act establishes the Estate<br />
Agents Registration Board, which is charged with<br />
the responsibility of registering estate agents and<br />
ensuring that the conduct of practicing agents<br />
is of a sufficiently high standard to ensure the<br />
protection of the public, including homebuyers.<br />
<strong>The</strong> Act sets out the qualifications and process<br />
required to register as an estate agent and<br />
prohibits unauthorised practice. Estate agents<br />
also owe clients fiduciary duties that include<br />
acting in the client’s best interest and disclosing<br />
to all concerned in whose interest one is acting.<br />
<strong>The</strong>se duties are geared towards ensuring that<br />
homebuyers are protected against unscrupulous<br />
intermediaries. While an estate agent’s main duty<br />
is to the vendor, some of the issues that arise in this<br />
context is the agent not telling homebuyers about<br />
issues with the home that they know of or ought to<br />
have known about, including misleading or false<br />
statements that are made regarding properties<br />
offered for sale.<br />
This is in breach of the Act, which prohibits<br />
dishonest practices and makes it a criminal<br />
offence to knowingly and wilfully make any<br />
statement, oral or written, which is false in any<br />
material way or misleading with a view to gaining<br />
an advantage or privilege under the Act whether<br />
for himself or for another. <strong>The</strong> Board is permitted<br />
under Part VI of the Act to institute an inquiry<br />
into an act or omission of an estate agent that is<br />
Estate agents also owe<br />
clients fiduciary duties<br />
that include acting in<br />
the client’s best interest<br />
and disclosing to all<br />
concerned in whose<br />
interest one is acting.<br />
<strong>The</strong>se duties are geared<br />
towards ensuring<br />
that homebuyers are<br />
protected against<br />
unscrupulous<br />
intermediaries.<br />
contrary to the public interest or the professional<br />
misconduct of estate agents on receipt of a<br />
complaint. If found guilty, the Board may suspend<br />
the estate agent’s registration, caution the<br />
individual, impose a fine or order that the name of<br />
the individual to be deleted from the register.<br />
<strong>The</strong> Act is currently under review and there is an<br />
ongoing push for the establishment of a code of<br />
conduct for real estate agents to eliminate fraud<br />
and restore public confidence. This is particularly<br />
true for investors in the diaspora who have fallen<br />
victims to scams by unscrupulous agents and<br />
fraudsters.<br />
COMPETITION ACT<br />
<strong>The</strong> Competition Act, 2010 works in line with the<br />
existing consumer protection laws. It establishes<br />
the Competition Authority of Kenya<br />
(CAK) whose mandate is to enforce the<br />
Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible
7<br />
8<br />
Focus on Policy<br />
Focus on Policy<br />
Best Practices in the Kenyan Construction Sector:<br />
What Every Investor Should Know<br />
Further, in offplan<br />
purchases,<br />
the homebuyer is<br />
usually provided with<br />
building plans and<br />
specifications of what<br />
the developer intends<br />
to build including<br />
floor plans and a<br />
schedule of finishes for<br />
the property.<br />
Competition Act with the objective of enhancing the welfare<br />
of the Kenyan consumers by promoting and protecting<br />
effective competition in markets, including the construction<br />
sector, and preventing misleading market conduct.<br />
A consumer may file a complaint with the CAK. However,<br />
prior to doing so, the consumer should attempt to settle any<br />
issues with the supplier of goods or service provider. This<br />
might be done via a telephone call, a complaint letter or a<br />
face to face meeting. <strong>The</strong> consumer should be prepared to<br />
furnish the supplier with any documentation that the supplier<br />
requires to assess the claim and the appropriate remedy.<br />
This will also serve as proof that the matter was raised with<br />
the supplier and could form the basis of a formal complaint<br />
to the Competition Authority. If the complaints mechanisms<br />
under the various statutes outlined above do not resolve the<br />
issues, the only avenue may be going to court. This may<br />
involve considerable expenses and the court process may<br />
take time. It is therefore essential that homebuyers carry out<br />
sufficient due diligence to avert some of the avoidable risks.<br />
BEST PRACTICES<br />
It is recommended that prospective homebuyers only deal<br />
with duly registered and accredited players in the industry<br />
and enlist the services of professionals such as lawyers,<br />
valuers and surveyors to safeguard their interests.<br />
Background Checks<br />
Prospective homebuyers have the option of purchasing<br />
property before construction begins or during the<br />
construction period. <strong>The</strong>se are commonly known as “offplan”<br />
purchases. <strong>The</strong> benefits of buying off-plan include<br />
discounted sale price, flexibility in terms of payment<br />
plans, low initial capital outlay and property appreciation.<br />
However, due to complex nature of off-plan purchases, it is<br />
important to perform background checks on the developer.<br />
Homebuyers should ensure that they review the company’s<br />
website and obtain information on the developer’s<br />
completed and ongoing projects.<br />
Prospective homebuyer may wish to look into who the<br />
directors are and can access online forums to find out if<br />
other investors have had negative experiences with the<br />
developer. <strong>The</strong>y should also request for the registration<br />
number of the contractors that have been hired to construct<br />
the property and conduct a check on them as well to<br />
determine whether they hold a valid license if there are<br />
any conditions on the license, and the outcome of any<br />
disciplinary actions or prosecutions. Further, in off-plan<br />
purchases, the homebuyer is usually provided with building<br />
plans and specifications of what the developer intends<br />
to build including floor plans and a schedule of<br />
finishes for the property. <strong>The</strong>se plans may not<br />
yet be approved, which makes them subject to<br />
change, and it is not uncommon for the developer<br />
to retain the right to alter the plans and finishes in<br />
the sale agreement. Homebuyers should therefore<br />
carefully review these documents before signing<br />
and ensure that they are satisfied with the level<br />
of disclosure provided and the standards of the<br />
finishes. Prospective purchasers should also check<br />
that the real estate agents they are dealing with are<br />
duly registered.<br />
Home Inspections<br />
Homebuyers should carry out the necessary due<br />
diligence that would enable them to detect all patent<br />
defects in the property. Patent defects are those<br />
that are not hidden and should easily be discovered<br />
by a reasonable inspection. It is thus recommended<br />
that prospective homebuyers hire an independent<br />
expert to inspect the property before proceeding<br />
with the transaction. While home inspections can be<br />
expensive, a home inspection report would reveal<br />
the true physical condition of the property and help<br />
ensure that the transaction is fair.<br />
Furthermore, it is highly recommended that<br />
homebuyers only accept clauses in standard sale<br />
agreements which provide that the property is sold<br />
“as is” if the vendor agrees to make the sale subject<br />
to a satisfactory home inspection. This would give<br />
the purchaser the option to withdraw or re-negotiate<br />
the contract if the home inspection report reveals<br />
defects in the property.<br />
On the other hand, while latent defects or faults<br />
that would not be readily revealed by a reasonable<br />
inspection ought to be disclosed by the vendor,<br />
there is no automatic right for a purchaser to claim<br />
against the vendor when they are discovered. In the<br />
instance of a development, the lease will usually<br />
provide a period within which to claim for latent<br />
defects and if a claim is not received within the<br />
period stipulated, the right to seek relief from the<br />
developer lapses. When buying an existing home,<br />
the prospective homebuyer cannot claim from the<br />
vendor absent an agreement in the contract.<br />
Property Valuations<br />
Homebuyers should seriously consider obtaining an<br />
independent valuation of the property they intend to<br />
purchase rather than relying on the representations<br />
of the vendor. <strong>The</strong> valuation report will usually<br />
contain detailed information on the property and<br />
comparisons with other similar properties. <strong>The</strong><br />
report will also set out the sale value of the property,<br />
which can guide homebuyers in determining what<br />
they should be paying.<br />
Valuations may also forestall real estate related<br />
risks by revealing whether the property is on a<br />
road reserve, riparian reserve or government land.<br />
<strong>The</strong> Valuers Registration Board is responsible for<br />
all valuation matters including professional fees to<br />
be charged under the Valuers Act, 2000. Valuers<br />
must adhere to the scale of fees provided under<br />
the Act and homebuyers may seek relief through<br />
the Institute of Surveyors of Kenya if the valuer<br />
engages in professional misconduct in relation to<br />
the fees charged.<br />
However, one of the issues with off-plan purchases<br />
is that the value of off-plan properties can be<br />
artificially increased to cater for commissions to<br />
the vendor’s agents and project marketers and<br />
other up-front costs. Furthermore, homebuyers<br />
do not have any means of comparing the property<br />
to similar properties in the market. In these<br />
circumstances, it is recommended that homebuyers<br />
investigate the price of comparable established<br />
developments to determine whether the price has<br />
been inflated.<br />
Professional Legal Advice<br />
<strong>The</strong> courts have found that where an offer for sale<br />
is subject to contract, the onus is on the purchaser<br />
to make sure that the proper enquiries are carried<br />
out. This makes it essential for homebuyers to bring<br />
lawyers on board and seek their advice prior to<br />
signing the sale agreement. This is especially true<br />
for off-plan sale contracts which are drafted quite<br />
differently to standard contracts.<br />
<strong>The</strong> lawyer’s role is to ensure that the purchaser’s<br />
interests are protected and he or she ends up<br />
with a good title to the property by conducting the<br />
relevant searches and advising on provisions of the<br />
contract documents that may be prejudicial to the<br />
purchaser.<br />
Financial Advice<br />
For off-plan purchases that are being financed, the<br />
financier will usually disburse the loan in trenches<br />
as the project progresses. This is to ensure that<br />
the loan amount is not misapplied or wasted if<br />
the project is delayed or fails to complete. <strong>The</strong><br />
risk to the borrower is that he is still required to<br />
Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />
Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible
9<br />
Focus on Policy<br />
Best Practices in the Kenyan Construction Sector:<br />
What Every Investor Should Know<br />
repay the principal amount with interest at the agreed intervals. A further<br />
risk is if the borrower’s income changes to the extent that the monthly<br />
loan repayments are no longer affordable. If the interest rate is variable,<br />
any increase down the road could also impact the borrower’s ability to<br />
service the loan. This is just the tip of the iceberg and there are many<br />
other financial risks to consider. It is therefore highly recommended that<br />
prospective homebuyers obtain proper financial advice prior to investing.<br />
Homebuyers who intend to borrow should also use the time between the<br />
initial deposit and completion of the project to build savings, which can be<br />
used to pay back the loan in the event that their circumstances change.<br />
CONCLUSION<br />
<strong>The</strong> advancement in the level of consumer protection in Kenya over<br />
the years is laudable and supports the construction industry’s efforts to<br />
restore and maintain public confidence. We have also seen the formation<br />
of various consumer focused agencies such as the Consumer Federation<br />
of Kenya (COFEK) whose primary purpose is to promote consumer<br />
rights and ensure that consumers get value for their money. COFEK,<br />
for instance, will intervene on behalf of consumers and will protect<br />
them against unfair practices. Homebuyers also have a role to play in<br />
ensuring that their interests are adequately protected and should give due<br />
consideration to all available options and determine what works best for<br />
them.<br />
AUTHOR<br />
Name: Angela Ogang<br />
Company: Oraro & Company Advocates<br />
Position Associate<br />
Tel +254 271 3 636/271 1 480<br />
Email angela@oraro.co.ke<br />
Address ACK Garden Annex, 6th floor,<br />
1st Ngong Avenue, Nairobi, Kenya,<br />
P. O. Box 51236-00200, Nairobi, Kenya<br />
DISCLAIMER<br />
<strong>The</strong> information in this article is for general purposes<br />
and guidance only and does not constitute legal or<br />
professional advice. For further information on this<br />
publication, contact insights@oraro.co.ke<br />
BIO<br />
Angela is a bilingual<br />
(English/French)<br />
international lawyer with an<br />
understanding of complex<br />
legal issues and the ability to<br />
frame effectively for clients and<br />
executive teams.<br />
She has a wealth of experience<br />
structuring, drafting and negotiating<br />
a wide range of agreements for<br />
business partners locally and abroad<br />
and was involved in M&A, Risk<br />
Management and Compliance activities<br />
while engaged in the financial services<br />
sector. Angela specialises in real estate<br />
and conveyancing, banking and commercial<br />
law and is a member of the firm’s<br />
newsletter editorial committee.<br />
<strong>The</strong> Developer’s<br />
<strong>Digest</strong><br />
A Publication by the Kenya Property Developers Association<br />
<strong>The</strong> Developer’s <strong>Digest</strong> is a<br />
quarterly e-newsletter supported<br />
and published by the Kenya<br />
Property Developers Association<br />
and designed by Insync MEDIA<br />
Ltd. It targets the various<br />
players in the property industry<br />
in Kenya and highlights a wide<br />
spectre of issues affecting our<br />
members, other professionals,<br />
manufacturers and both private<br />
and public sector players<br />
in the industry. We seek to<br />
encourage positive dialogue and<br />
development<br />
<strong>The</strong> Developer’s <strong>Digest</strong> is<br />
filled with current industry news,<br />
updates on the Association’s<br />
ongoing activities, views,<br />
interesting facts and specialty<br />
advertising messages.<br />
ONLINE ADVERTISING<br />
TERMS & CONDITIONS:<br />
Payment is due within 15 days<br />
from when an invoice is issued.<br />
All payments should be made<br />
in the name of KPDA.<br />
Banner ads may be pulled if<br />
account balances are not paid<br />
by the due date. As space is<br />
limited, banner ads are sold on a<br />
first come, first served basis. All<br />
advertising is accepted subject<br />
to the publisher’s approval upon<br />
determination that the products<br />
or service advertised are in<br />
keeping with <strong>The</strong> Developer’s<br />
<strong>Digest</strong>’s philosophy.<br />
DIGITAL INPUT/MECHANICAL REQUIREMENTS — ADVERTS<br />
SIZE<br />
1/4 page ( horizontal)<br />
1/4 page (vertical)<br />
1/3 page (horizontal)<br />
1/3 page (vertical)<br />
1/2 page (horizontal)<br />
1/2 page (vertical)<br />
Full page (theme colour)<br />
Full page<br />
WHY ADVERTISE THROUGH<br />
THE DEVELOPER’S DIGEST?<br />
1. Our readership includes over 1, 500 of our contacts who are<br />
KPDA members and partners as well as other industry players<br />
2. We offer a unique, flexible, converged media mix that helps<br />
advertisers communicate their message effectively. This includes<br />
our website, e-newsletter, social media platforms and focused<br />
events (such as our training and networking forums)<br />
3. We keep track of our readership and are sensitive to emerging<br />
issues in the industry<br />
4. It is a free and interactive online publication<br />
5. It is a free downloadable Mobile App onto any mobile device<br />
6. We at <strong>The</strong> Developer’s <strong>Digest</strong> will work with you to create the<br />
most effective multi-platform advertising strategy that will ensure<br />
you reach your targeted consumer every direction they look.<br />
After all, the distance between you and your consumer, is no<br />
longer a straight line.<br />
<strong>The</strong> Developer’s <strong>Digest</strong> will also offer you advertising on our website<br />
with a direct link to you and your company’s website. Please contact<br />
the KPDA secretariat via email on admin@kpda.or.ke or call us on<br />
0737 530 290 or 0705 277 787 for more information.<br />
RATES PER TWO<br />
MONTH PERIOD<br />
Quarter (1/4) page: Kshs. 20, 000<br />
Third (1/3) page: Kshs. 30, 000<br />
Half (1/2) page: Kshs. 45, 000<br />
Full page: Kshs. 60, 000<br />
ADVERTISING<br />
RATE CARD<br />
WIDTH<br />
184.5mm<br />
90mm<br />
210mm<br />
68mm<br />
210mm<br />
105mm<br />
210mm<br />
210mm<br />
DEPTH<br />
65mm<br />
125.5mm<br />
90mm<br />
270mm<br />
139mm<br />
265mm<br />
247mm<br />
297mm<br />
300 dpi resolution; colour calibration RGB; not larger than 20MB;<br />
NOTE: jpg format OR pdf PRESS QUALITY format with outlined text.<br />
10<br />
Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible
11<br />
<strong>2018</strong> KPDA CALENDAR OF EVENTS<br />
II. KPDA WORKSHOP<br />
About the Event: Technical Training and<br />
Discussion on a local or global real estate<br />
topic<br />
Event Organizer: Kenya Property<br />
Developers Association<br />
Event Timing: 8.30am – 1.00pm<br />
Target Audience: Middle to high level<br />
management from KPDA membership<br />
Target Number: 80 – 100 pax<br />
Registration/Attendance Fees: To be<br />
advised<br />
Target Number: 90 – 120 pax<br />
Registration/Attendance Fees: Kshs. 3, 700<br />
inclusive of VAT (KPDA Members) and Kshs. 5,<br />
500 inclusive of VAT (Non KPDA Members)<br />
Opportunity for Sponsorship: Open and to<br />
be advised<br />
IV. KPDA KOROGA EVENTS<br />
About the Event: Informal corporate<br />
<strong>2018</strong> KPDA CALENDAR OF EVENTS<br />
networking event for guests to socialize and<br />
interact<br />
Event Organizer: Kenya Property Developers<br />
Association<br />
Event Organizer: Kenya Property Developers<br />
Association<br />
Event Timing: To be advised<br />
Target Audience: Public and KPDA<br />
12<br />
membership<br />
Target Number: To be advised<br />
Registration/Attendance Fees: To be advised<br />
Opportunity for Sponsorship: Open and to<br />
be advised<br />
DATE EVENT DETAILS ORGANIZER LOCATION EVENT SPONSOR<br />
Tuesday, 27 th <strong>Mar</strong>ch <strong>2018</strong> KPDA Workshop (8.30am – 1.00pm)<br />
<strong>The</strong>me: ‘Innovative Finance in<br />
Kenya’<br />
KPDA<br />
Tel: 0705 277 787/0737 530 290<br />
ParkInn by Radisson<br />
Hotel, Nairobi<br />
RHOMBUS<br />
<strong>Mar</strong>ch/April <strong>2018</strong><br />
Nairobi/Kiambu/Kajiado/Machakos City<br />
County Government/KPDA Roundtable<br />
Meetings<br />
13 th – 14 th <strong>Mar</strong>ch <strong>2018</strong> Inaugural SPACE<br />
(Sustainable Properties Africa) Conference<br />
KPDA<br />
Tel: 0705 277 787/0737 530 290<br />
Sally <strong>Mar</strong>waha – Event Director<br />
Email:<br />
sally.marwaha@benchevents.com<br />
Tuesday, 10 th April <strong>2018</strong> KPDA Roundtable with KRA KPDA<br />
Tel: 0705 277 787/0737 530 290<br />
24 th – 25 th April <strong>2018</strong> East African Property Investment<br />
Kfir Rusin – Managing Director<br />
Summit (EAPI)<br />
Email: krusin@apievebts.com<br />
Friday, 4 th May <strong>2018</strong> 6 th KPDA AGM and Koroga Event KPDA<br />
(6.00pm onwards)<br />
Tel: 0705 277 787/0737 530 290<br />
Kajiado County<br />
Offices, Kajiado<br />
Radisson Blue Hotel,<br />
Nairobi<br />
To be Confirmed<br />
Radisson Blue Hotel,<br />
Nairobi<br />
Spice Roots Restaurant<br />
KPDA<br />
SPACE<br />
KPDA<br />
EAPI<br />
OPEN TO<br />
SPONSORSHIP<br />
DATE EVENT DETAILS ORGANIZER LOCATION EVENT SPONSOR<br />
Tuesday, 27 th <strong>Mar</strong>ch <strong>2018</strong> KPDA Workshop SPONSORSHIP (8.30am – 1.00pm) CATEGORIES KPDA AND BENEFITS ParkInn by Radisson RHOMBUS<br />
<strong>The</strong>me: ‘Innovative Finance in<br />
WHY SHOULD YOU PARTNER Kenya’ WITH KPDA?<br />
Tel: 0705 277 787/0737 530 290 Hotel, Nairobi<br />
Attendance <strong>Mar</strong>ch/April at <strong>2018</strong> our events ranges Nairobi/Kiambu/Kajiado/Machakos from between 60 to 150 participants City drawn KPDA from both our membership, non-members Kajiado and County our partners KPDA<br />
All our events are professionally County managed, Government/KPDA well organized with Roundtable industry experience Tel: 0705 and 277 a proven 787/0737 platform 530 290 for engagement Offices, Kajiado<br />
Access to expert content and speakers Meetings from both the industry and its stakeholder organizations<br />
Opportunity 13 th – 14 th <strong>Mar</strong>ch for networking <strong>2018</strong> with Inaugural like-minded SPACE building and construction professionals<br />
Sally <strong>Mar</strong>waha – Event Director Radisson Blue Hotel, SPACE<br />
(Sustainable Properties Africa) Conference Email:<br />
Nairobi<br />
Provision of excellent business development platforms for your company to receive exposure<br />
sally.marwaha@benchevents.com<br />
Further<br />
Tuesday,<br />
exposure<br />
10 th April<br />
for<br />
<strong>2018</strong><br />
your brand<br />
KPDA<br />
through<br />
Roundtable<br />
the various<br />
with<br />
media<br />
KRA<br />
channels<br />
KPDA<br />
To be Confirmed<br />
Access to information that will bridge the gap between your company and the Tel: rest 0705 of Kenya 277 787/0737 530 290<br />
KPDA<br />
24 th – 25 th April <strong>2018</strong> East African Property Investment<br />
Kfir Rusin – Managing Director Radisson Blue Hotel, EAPI<br />
For more information on the KPDA Summit <strong>2018</strong> Calendar (EAPI) of Events, please email ceo@kpda.or.ke Email: krusin@apievebts.com<br />
or call 0705 277 787 or Nairobi 0737 530 290.<br />
Friday, 4 th May <strong>2018</strong> 6 th KPDA AGM and Koroga Event<br />
(6.00pm onwards)<br />
KPDA<br />
Tel: 0705 277 787/0737 530 290<br />
Spice Roots Restaurant OPEN TO<br />
SPONSORSHIP<br />
Tuesday, 22 nd May <strong>2018</strong><br />
Tuesday 26 th June <strong>2018</strong><br />
KPDA CEO Breakfast Forum (7.00am<br />
– 9.30am)<br />
<strong>The</strong>me: ‘Alternative Building Technology:<br />
Pros and Cons’<br />
KPDA Conference on Affordable<br />
Housing<br />
KPDA<br />
Tel: 0705 277 787/0737 530 290<br />
KPDA<br />
Tel: 0705 277 787/0737 530 290<br />
June/August <strong>2018</strong> National REITs Conference REITs Association of Kenya<br />
(RAK)<br />
c/o Nairobi Securities Exchange<br />
Tel: 020 2831000<br />
Tuesday, 21 st August <strong>2018</strong><br />
September <strong>2018</strong><br />
KPDA CEO Breakfast Forum (7.00am<br />
– 9.30am)<br />
<strong>The</strong>me: ‘Infrastructure for Kenya’s<br />
Economic Development’<br />
KPDA Exhibition on Affordable<br />
Housing<br />
KPDA<br />
Tel: 0705 277 787/0737 530 290<br />
KPDA<br />
Tel: 0705 277 787/0737 530 290<br />
To be Confirmed,<br />
Nairobi<br />
Safari Park Hotel,<br />
Nairobi<br />
To be Confirmed<br />
To be Confirmed,<br />
Nairobi<br />
To be Confirmed,<br />
Nairobi<br />
OPEN TO<br />
SPONSORSHIP<br />
OPEN TO<br />
SPONSORSHIP<br />
RAK<br />
OPEN TO<br />
SPONSORSHIP<br />
OPEN TO<br />
SPONSORSHIP<br />
Tuesday, 22 nd May <strong>2018</strong> KPDA CEO Breakfast Forum (7.00am KPDA<br />
To be Confirmed,<br />
– 9.30am) CATEGORIES Tel: AND 0705 BENEFITS<br />
277 787/0737 530 290 Nairobi<br />
PLATINUM: KSHS. 500, 000 <strong>The</strong>me: ‘Alternative Building Technology:<br />
Pros and Cons’<br />
BENEFITS: Tuesday 26 th June <strong>2018</strong> KPDA Conference on Affordable KPDA<br />
Safari Park Hotel,<br />
Event Brochure: Your organization’s Housing name will appear in all brochures (if produced). Tel: 0705 277 787/0737 530 290 Nairobi<br />
Newspaper Advertisements: Your organization will get prominent sponsor name recognition in all event press releases if published.<br />
June/August Event Program <strong>2018</strong> and Announcement: National REITs Your Conference organization’s name will be listed REITs in the Association event’s program of Kenya and will be recognized To be Confirmed as a sponsor.<br />
Complimentary Advertisements:<br />
(RAK)<br />
c/o Nairobi Securities Exchange<br />
- KPDA Website: Your organization’s name will be listed on the KPDA website<br />
Tel: 020<br />
as a<br />
2831000<br />
sponsor for the period<br />
Tuesday, of one 21 st (1) August year <strong>2018</strong> KPDA CEO Breakfast Forum (7.00am KPDA<br />
To be Confirmed,<br />
Complimentary advertisement – 9.30am) in one issue of the KPDA E-Newsletter Tel: 0705 277 787/0737 530 290 Nairobi<br />
<strong>The</strong> opportunity to include literature <strong>The</strong>me: at the ‘Infrastructure event and get for two Kenya’s (2) tables to display your organization’s products<br />
Branding within and outside the Economic room Development’<br />
September Opportunity <strong>2018</strong> for a presentation KPDA Exhibition on Affordable KPDA<br />
To be Confirmed,<br />
Complimentary attendance of six Housing (6) staff representatives<br />
Tel: 0705 277 787/0737 530 290 Nairobi<br />
OPEN TO<br />
SPONSORSHIP<br />
OPEN TO<br />
SPONSORSHIP<br />
RAK<br />
OPEN TO<br />
SPONSORSHIP<br />
OPEN TO<br />
SPONSORSHIP<br />
Friday, 12 th October <strong>2018</strong><br />
Friday, 27 th November<br />
<strong>2018</strong><br />
I. COUNTY ROUNDTABLE<br />
MEETINGS<br />
About the Meeting: Discussion on the<br />
engagement of KPDA members with the<br />
various county governments<br />
Meeting Organizer: Kenya Property<br />
Developers Association<br />
Meeting Time Frame: 2 hours<br />
Target Audience: High level<br />
management/decision makers from KPDA<br />
membership<br />
Target Number: 20 – 25 pax<br />
Registration/Attendance Fees: NIL<br />
Opportunity for Sponsorship: NIL<br />
II. KPDA WORKSHOP<br />
About the Event: Technical Training and<br />
Discussion on a local or global real estate<br />
topic<br />
Event Organizer: Kenya Property<br />
Developers Association<br />
Event Timing: 8.30am – 1.00pm<br />
Target Audience: Middle to high level<br />
management from KPDA membership<br />
Target Number: 80 – 100 pax<br />
Registration/Attendance Fees: To be<br />
advised<br />
KPDA Corporate Networking Koroga<br />
Event (6.30pm onwards)<br />
KPDA CEO Breakfast Forum (7.00am<br />
– 9.30am)<br />
<strong>The</strong>me: ‘<strong>The</strong> Role of Ethics in Running a<br />
Successful Business in Kenya’<br />
KPDA<br />
Tel: 0705 277 787/0737 530 290<br />
KPDA<br />
Tel: 0705 277 787/0737 530 290<br />
EVENT DESCRIPTION<br />
Opportunity for Sponsorship: Open and to<br />
be advised<br />
III. CEO BREAKFAST FORUMS/CEO<br />
MORNING LEARNING SESSIONS<br />
About the Event: Discussion on policy matters<br />
and advocacy of real estate issues<br />
Event Organizer: Kenya Property Developers<br />
Association<br />
Event Timing: 7.30am – 9.30am/7.30am<br />
11.00am<br />
Target Audience: High level<br />
management/decision makers from KPDA<br />
membership<br />
Target Number: 90 – 120 pax<br />
Registration/Attendance Fees: Kshs. 3, 700<br />
inclusive of VAT (KPDA Members) and Kshs. 5,<br />
500 inclusive of VAT (Non KPDA Members)<br />
Opportunity for Sponsorship: Open and to<br />
be advised<br />
IV. KPDA KOROGA EVENTS<br />
About the Event: Informal corporate<br />
networking event for guests to socialize and<br />
interact<br />
Event Organizer: Kenya Property Developers<br />
Association<br />
To be Confirmed,<br />
Nairobi<br />
To be Confirmed,<br />
Nairobi<br />
OPEN TO<br />
SPONSORSHIP<br />
OPEN TO<br />
SPONSORSHIP<br />
Event Timing: 6.30pm onwards<br />
Target Audience: High level<br />
management/decision makers from KPDA<br />
membership<br />
Target Number: 120 – 150 pax<br />
Registration/Attendance Fees: Kshs. 2,<br />
820 inclusive of VAT (KPDA Members) and<br />
Kshs. 3, 980 inclusive of VAT (Non KPDA<br />
Members)<br />
Opportunity for Sponsorship: Open and to<br />
be advised<br />
V. KPDA CONFERENCE<br />
About the Event: To be advised<br />
Event Organizer: Kenya Property Developers<br />
Association<br />
Event Timing: To be advised<br />
Target Audience: Public and KPDA<br />
membership<br />
Target Number: To be advised<br />
Registration/Attendance Fees: To be advised<br />
Opportunity for Sponsorship: Open and to<br />
be advised<br />
GOLD: Friday, KSHS. 12 th October 350, 000 <strong>2018</strong><br />
KPDA Corporate Networking Koroga<br />
Event (6.30pm onwards)<br />
KPDA<br />
Tel: 0705 277 787/0737 530 290<br />
To be Confirmed,<br />
Nairobi<br />
OPEN TO<br />
SPONSORSHIP<br />
BENEFITS:<br />
Friday, Complimentary 27 th November KPDA Website KPDA Advertisements: CEO Breakfast Forum Your organization’s (7.00am name KPDA will be listed on the KPDA website To as be an Confirmed,<br />
event sponsor for the OPEN period TO of<br />
<strong>2018</strong> marketing the event – 9.30am)<br />
Tel: 0705 277 787/0737 530 290 Nairobi<br />
SPONSORSHIP<br />
Event Announcement: Your <strong>The</strong>me: organization ‘<strong>The</strong> Role will be of recognized Ethics in Running as a sponsor. a<br />
Complimentary attendance of three Successful (3) staff Business representatives in Kenya’<br />
Branding within and outside the room<br />
Opportunity for a presentation<br />
EVENT DESCRIPTION<br />
One table to display products<br />
SILVER:<br />
I. COUNTY<br />
KSHS. 200,<br />
ROUNDTABLE<br />
000<br />
Opportunity for Sponsorship: Open and to<br />
Event Timing: 6.30pm onwards<br />
MEETINGS<br />
be advised<br />
Target Audience: High level<br />
BENEFITS:<br />
management/decision makers from KPDA<br />
Complimentary About the Meeting: Website Discussion Advertisements: on the Your organization’s III. CEO BREAKFAST name will be FORUMS/CEO<br />
listed on the KPDA website as an membership event sponsor for the period of<br />
engagement of KPDA members with the<br />
MORNING LEARNING SESSIONS<br />
Target Number: 120 – 150 pax<br />
marketing the event<br />
various county governments<br />
Registration/Attendance Fees: Kshs. 2,<br />
Branding within and outside the room<br />
Meeting Organizer: Kenya Property<br />
About the Event: Discussion on policy matters<br />
820 inclusive of VAT (KPDA Members) and<br />
Opportunity for a presentation<br />
Developers Association<br />
and advocacy of real estate issues<br />
Kshs. 3, 980 inclusive of VAT (Non KPDA<br />
Complimentary<br />
Meeting Time<br />
attendance<br />
Frame: 2<br />
of<br />
hours<br />
two (2) staff representatives<br />
Event Organizer: Kenya Property Developers<br />
Members)<br />
Target Audience: High level<br />
Association<br />
Opportunity for Sponsorship: Open and to<br />
BRONZE: Kshs. 100, 000<br />
management/decision makers from KPDA<br />
Event Timing: 7.30am – 9.30am/7.30am<br />
be advised<br />
membership<br />
11.00am<br />
BENEFITS:<br />
Target Number: 20 – 25 pax<br />
Target Audience: High level<br />
V. KPDA CONFERENCE<br />
Branding<br />
Registration/Attendance<br />
outside the room<br />
Fees: NIL<br />
management/decision makers from KPDA<br />
Mention<br />
Opportunity<br />
as a sponsor<br />
for Sponsorship: NIL<br />
membership<br />
About the Event: To be advised<br />
Complimentary attendance of one (1) staff representative<br />
Target Number: 90 – 120 pax<br />
Event Organizer: Kenya Property Developers<br />
II. KPDA WORKSHOP<br />
Registration/Attendance Fees: Kshs. 3, 700<br />
Association<br />
*KPDA PREMIUM MEMBERS ARE ENTITLED TO A 15% DISCOUNT OFF SELECTED CATEGORIES<br />
inclusive of VAT (KPDA Members) and Kshs. 5,<br />
Event Timing: OF SPONSORSHIP<br />
To be advised<br />
For About more information the Event: on Technical the KPDA Training <strong>2018</strong> Calendar and of Events, 500 please inclusive email ceo@kpda.or.ke of VAT (Non KPDA or call Members) 0705 277 787 or 0737 530<br />
Target<br />
290.<br />
Audience: Public and KPDA<br />
Discussion on a local or global real estate<br />
Opportunity for Sponsorship: Open and to<br />
membership<br />
topic<br />
be advised<br />
Target Number: To be advised<br />
Event Organizer: Kenya Property<br />
Registration/Attendance Fees: To be advised<br />
Developers Association<br />
IV. KPDA KOROGA EVENTS<br />
Opportunity for Sponsorship: Open and to<br />
Event Timing: 8.30am – 1.00pm<br />
be advised<br />
Target Audience: Middle to high level<br />
management from KPDA membership<br />
Target Number: 80 – 100 pax<br />
Registration/Attendance Fees: To be<br />
advised<br />
About the Event: Informal corporate<br />
networking event for guests to socialize and<br />
interact<br />
Event Organizer: Kenya Property Developers<br />
Association<br />
SPONSORSHIP CATEGORIES AND BENEFITS<br />
WHY SHOULD YOU PARTNER WITH KPDA?<br />
Attendance at our events ranges from between 60 to 150 participants drawn from both our membership, non-members and our partners<br />
All our events are professionally managed, well organized with industry experience and a proven platform for engagement<br />
Access to expert content and speakers from both the industry and its stakeholder organizations<br />
Opportunity for networking with like-minded building and construction professionals<br />
Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />
SPONSORSHIP CATEGORIES AND BENEFITS<br />
WHY SHOULD YOU PARTNER WITH KPDA?<br />
Attendance at our events ranges from between 60 to 150 participants drawn from both our membership, non-members and our partners<br />
All our events are professionally managed, well organized with industry experience and a proven platform for engagement<br />
Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />
Access to expert content and speakers from both the industry and its stakeholder organizations<br />
Opportunity for networking with like-minded building and construction professionals
13<br />
HAVE YOUR SAY<br />
STATUS OF THE<br />
REAL ESTATE<br />
HAVE YOUR SAY<br />
14<br />
BUILT ENVIRONMENT<br />
December<br />
2017<br />
• Prime residential rents in Nairobi declined<br />
over the 1st half of 2017 albeit at a slower<br />
rate of -2.75% compared to -4.36% over the<br />
first half of 2016. <strong>The</strong> decline was resultant<br />
of an oversupply and corporate budget cuts<br />
by multinationals.<br />
• Prime residential prices decreased by 0.9%<br />
over the 1st half of 2017 compared to an<br />
increase of 1.3% over the same period in<br />
2016. Prevailing market conditions, high<br />
capital values of prime residential homes<br />
and the introduction of interest rate capping<br />
during the 2nd half of 2016 led to most<br />
financial institutions being reluctant to lend<br />
to private individuals<br />
• Nairobi experienced a 2% decline in the<br />
absorption of office space in the 1st half of<br />
2017 compared to the 2nd half of 2016<br />
• <strong>The</strong> anticipated release of approximately<br />
240,000 sqm of office space in Nairobi in<br />
2017, up from about 210,000 sqm in 2016,<br />
is expected to continue exerting a downward<br />
pressure on rents in the short term<br />
• <strong>The</strong> 1st half of 2017 saw logistic parks<br />
gaining momentum, responding to the<br />
growing demand for high quality international<br />
standard warehousing space with modern,<br />
high-specification facilities to suit varied<br />
occupiers.<br />
<strong>The</strong> migration of industrial firms to satellite<br />
towns is attributed to availability of affordable<br />
land for development, improved infrastructure,<br />
the need for more space for storage, expansion,<br />
parking and circulation and cheaper rents.<br />
240,000 sqm<br />
release of office space in Nairobi in<br />
2017<br />
STATUS OF THE BUILT ENVIRONMENT • ISSUE NO. 1 • DECEMBER 2017<br />
<strong>The</strong> construction sector is a key<br />
driver of economic growth in Kenya.<br />
It contributes at least 7% of GDP.<br />
Compared to other GDP economic<br />
contributors, it is important to<br />
note that the construction sector<br />
recorded the biggest increase in<br />
contribution to GDP, gaining 0.4% of<br />
the share.<br />
<strong>The</strong> construction sector contributes<br />
economic growth in Kenya<br />
7 % of GDP<br />
0.4<br />
STATUS OF THE BUILT ENVIRONMENT • ISSUE NO. 1 • DECEMBER 2017<br />
<strong>The</strong> Kenya National Bureau of Statistics highlights that:-<br />
In Q1 (<strong>Jan</strong>uary to April 2017), the construction sector experienced a slowdown<br />
expanding 8.4% compared to 10.2% over the same period in 2016. <strong>The</strong> decreased<br />
growth in the sector was a consequence of significantly scaled-down activities in<br />
construction of Phase 1 of the Standard Gauge Railway (SGR) as it neared completion.<br />
Construction sector recorded the<br />
biggest increase per share<br />
%<br />
Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />
LAND<br />
Land prices within the Nairobi<br />
Metropolis, especially in the satellite<br />
towns such as Thika, Ruiru and<br />
Murang’a, continued to be on an<br />
upward trend, backed by improved<br />
infrastructure and urban population<br />
growth.<br />
INVESTOR AND DEVELOPER SCENE<br />
Investors spent<br />
Sh<br />
107.2 B<br />
On residential led developments<br />
Compared to<br />
Sh<br />
61 b<br />
Invested in commercial development<br />
Galvanized iron<br />
145.1 M<br />
Tonnes consumed in the first seven months<br />
of 2017<br />
Compared with<br />
155 M<br />
Tonnes consumed in the first seven months<br />
of 2016<br />
• Residential developments led in investment.<br />
Investors spent KSh88.6 billion during the<br />
first seven months of 2017, compared<br />
with KSh61 billion invested in commercial<br />
development<br />
• According to the Kenya National Bureau of<br />
Statistics (KNBS). This was a drop compared<br />
to 2016 when Sh107.2 billion was spent on<br />
residential development and Sh76 billion on<br />
commercial development.<br />
• 145.1 million tonnes of galvanized iron<br />
sheets were consumed in the first seven<br />
months of 2017 compared with 155 million<br />
in 2016, indicating a slowdown informed by<br />
reduced activity as investors adopted a waitand-see<br />
attitude in the run-up to the August<br />
8th General election.<br />
Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />
STATUS OF THE BUILT ENVIRONMENT • ISSUE NO. 1 • DECEMBER 2017
15<br />
POLICY<br />
HAVE YOUR SAY<br />
National Construction Authority<br />
Made it mandatory for foreign<br />
contractors to work with local<br />
contractors by ceding at least<br />
• NCA, NEMA and Land Rate Fees<br />
were scrapped off<br />
• <strong>The</strong> National Construction<br />
Authority (NCA) made it<br />
mandatory for foreign<br />
contractors to work with local<br />
contractors by ceding at least<br />
30% of the contract sum. This<br />
is in a bid to cushion local<br />
contractors from their foreign<br />
counterparts.<br />
INFRASTRUCTURE<br />
<strong>The</strong> Kenya 2017/<strong>2018</strong> National Budget<br />
Statement announced that the government<br />
would invest KSh640.8 billion in infrastructure<br />
development, up from KSh415.7 billion in the<br />
2016/2017 fiscal year.<br />
30 % Sh<br />
640.8 B<br />
CONTRACT<br />
SUM<br />
a. Urban mobility<br />
Ministry of Transport, Infrastructure,<br />
Housing and Urban Development through<br />
the Nairobi Metropolitan Area Transport<br />
Authority (NaMATA) is currently designing<br />
a Rapid Bus Transit (BRT) for the larger<br />
Nairobi Metropolitan area for a sustainable<br />
urban mobility.<br />
b. National Spatial Plan<br />
We have a National Spatial Plan 2015-<br />
2045. This plan will guide the sustainable<br />
management of land resources in this<br />
country as well as development and<br />
implementation of county plans. This will<br />
align the use of the land with the resources<br />
available at the county level for social and<br />
economic development.<br />
National Budget Statement<br />
Government would invest in<br />
infrastructure development<br />
STATUS OF THE BUILT ENVIRONMENT • ISSUE NO. 1 • DECEMBER 2017<br />
NO. OF PROJECTS ACCORDING<br />
TO CLIENT TYPES<br />
HAVE YOUR SAY<br />
0.04% - CDF<br />
0.6% - County<br />
Government<br />
5.1% - Religious/<br />
Social Organisations<br />
2% - Parastatal/<br />
Governmenr<br />
Agencies<br />
92.3% - Private<br />
NO. OF PROJECTS ACCORDING<br />
TO TYPE OF WORKS<br />
97.9% - Building Works<br />
16<br />
PROJECTS COST RANGE<br />
0.4% - Electrical Works Below KSh5 million<br />
0.07% - Mechanical Works<br />
KSh5 to 50 million<br />
0.59% - Office<br />
KSh50 to 200 million<br />
0.59% - Others<br />
KSh200 to 500 million<br />
0.22% - Road Works<br />
Above Sh1 billion<br />
0.3% - Water Works<br />
KSh500 million to 1 billion<br />
STATUS OF THE BUILT ENVIRONMENT • ISSUE NO. 1 • DECEMBER 2017<br />
According to KNBS<br />
<strong>The</strong> value of approved<br />
buildings declined by<br />
BUILDING PERMIT APPROVALS<br />
From the Kenya National Bureau of Statistics (KNBS), the value of approved<br />
buildings declined by 16.3% in between <strong>Jan</strong>uary and May from KSh126.3<br />
billion in 2016 to KSh 105.7 billion in 2017.<br />
Residential building approvals declined by 28.2% from KSh74.2 billion in<br />
2016 to KSh58.1 billion in 2017 with commercial office building approvals<br />
declining by 9.3% from KSh52 billion in 2016 to KSh47.6 billion in 2017.<br />
Residential building<br />
approvals declined by<br />
16.3 % Sh<br />
74.2 B<br />
Sh 52 B<br />
28.2 % 9.3%<br />
From<br />
Commercial office building<br />
approvals declining by<br />
From<br />
Status of the Built Environment 2017 is an<br />
article authored by the Architectural Association of Kenya<br />
(AAK). AAK is a body that brings together professionals<br />
from the Private Sector, Public Sector and Academia.<br />
For more information, please contact:<br />
<strong>The</strong> AAK Secretariat<br />
Blue Violets Plaza, 6th Floor, Rm 605<br />
Off Kindaruma Road, Off Ngong Road<br />
Tel: 020 2224806/0721 691 337<br />
www.aak.or.ke<br />
Blue Violets Plaza, Kamburu Drive, off Ngong Road.<br />
P.O. Box 44258 Nairobi, 00100<br />
Telephone: +254-020-2420806, 2420582 | Mobile: +254 721 691 337<br />
Email: aak@aak.or.ke • Website: www.aak.or.ke<br />
STATUS OF THE BUILT ENVIRONMENT • ISSUE NO. 1 • DECEMBER 2017<br />
Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />
ArchKE @arch_ke arch_ke<br />
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KPDA Register of Members<br />
KPDA Register of Members<br />
KPDA Directory of Members in Goodstanding as at 4 th April <strong>2018</strong><br />
In order to join KPDA, the following should be<br />
submitted to the KPDA Secretariat:<br />
1. Fill the KPDA Membership Application<br />
Form and sign the KPDA Code of Conduct;<br />
2. Attach a copy of your company’s<br />
Certificate of Registration or Certificate of<br />
Incorporation<br />
3. Attach a copy of your company’s KRA PIN<br />
Certificate; and<br />
4. Make the relevant payment<br />
Submission may be made either physically or<br />
electronically.<br />
Kindly contact the Membership Relations Officer,<br />
Cynthia Wakio through the telephone number<br />
0737 530 290 or 0705 277 787 or by email<br />
ceo@kpda.or.ke.<br />
Kenya Property Developers Association<br />
Fatima Flats, Suite 4 B<br />
<strong>Mar</strong>cus Garvey Road off Argwings Kodhek Road,<br />
Kilimani Area<br />
P. O. Box 76154 - 00508<br />
NAIROBI, KENYA<br />
Telephone: +254 737 530 290/0705 277 787<br />
Website: www.kpda.or.ke<br />
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WHY JOIN THE KPDA FAMILY?<br />
<strong>The</strong> Kenya Property Developers Association was established in Nairobi in 2006 as the<br />
representative body of the residential, commercial and industrial property development sector in<br />
Kenya. It is an emerging Business Member Organisation which works in proactive partnership<br />
with policy-makers, financiers and citizens to ensure that the property development industry grows<br />
rapidly but in an organized, efficient, economical and ethical manner.<br />
Working<br />
closely with<br />
government<br />
institutions<br />
KPDA<br />
MEMBER<br />
Strategic<br />
partnerships to<br />
ease land<br />
processes<br />
Working<br />
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23<br />
24<br />
from KPDA Partner<br />
from KPDA Partner<br />
Solutions staff will be present during day time.<br />
<strong>The</strong> Adopt A Road Faqs<br />
Upper Hill District Association(UHDA) have forged a partnership with Taka Taka Solutions, a waste<br />
management company, to bring to Upper Hill the Adopt A Road Initiative. It is a sustainable solution towards<br />
making Upper Hill a litter free zone.<br />
1. How does Adopt-A-Road work?<br />
TakaTaka Solutions, in partnership with UHDA and NCC, will offer the following:<br />
• Public area (street) waste collection and recycling services<br />
• A building (or multiple buildings/companies) can adopt a section of a public road<br />
• TakaTaka Solutions will offer the following services for the adopted road section<br />
1. Installation of recycling bins (with branding and signage)<br />
2. Daily waste collection and subsequent recycling of the waste<br />
3. Street cleaning for the adopted road section<br />
4. Quarterly reports detailing waste collected and<br />
recycled<br />
the<br />
<strong>The</strong> bins will be<br />
1. Bin as a whole:<br />
1.8m high (bin +<br />
sign), 60cm wide<br />
2. Sign only:<br />
58x82cm<br />
2. Is there a limit on the extent<br />
of road one can adopt?<br />
<strong>The</strong>re is no limit. However, the minimum road<br />
section should not be less than 500m.<br />
3. How many bins will be on a<br />
road and what are the sizes?<br />
<strong>The</strong> number of bins will depend on the amount of<br />
waste produced. For example, if food vendors are<br />
in the vicinity, more bins will be needed. Generally<br />
speaking, one bin for every 100-200 meters is<br />
planned. Sizes:<br />
• Bin as a whole: 1.8m high (bin + sign),<br />
60cm wide<br />
• Sign only: 58x82cm<br />
4. Can the bins be customized<br />
according to a property owner's<br />
liking?<br />
<strong>The</strong> bin itself cannot be customized. <strong>The</strong>re is<br />
some level of flexibility with regards to the sign.<br />
5. Is there a way to ensure that<br />
bins are not vandalized?<br />
cemented into the ground. Moreover, TakaTaka<br />
6. Who will cater the cost when the<br />
bins have been vandalized?<br />
Maintenance and repairs of bins will be managed by<br />
TakaTaka Solutions.<br />
7. Is the Adopt-A-Road limited to<br />
property owners only?<br />
Adopt-a-Road is also open to tenants or other organisations.<br />
8. With the ban of plastic bags,<br />
will the bins be lined with garbage<br />
liners?<br />
<strong>The</strong> bins will not be lined with garbage liners. However, they<br />
will be regularly cleaned by TakaTaka Solutions.<br />
9. Will the property owner have<br />
to pay Nairobi City County for<br />
sponsoring the bins?<br />
Adopt-a-Road works similarly to the concept of maintaining<br />
public roundabouts. As a public service is offered and no<br />
direct advertisement is done (only the logo displayed), there<br />
should be no fees to NCC.<br />
This is why its important that the content of the sign does<br />
not go into a marketing direction (beyond acknowledging the<br />
adopting of the road).<br />
10. Other than keeping the road<br />
clean, how else does a property<br />
owner benefit?<br />
• All the waste collected will be recycled<br />
• Quarterly recycling reports will be sent to each<br />
sponsor detailing waste quantities collected and<br />
recycled.<br />
• Sponsorship opportunity<br />
11. What is the duration of the Adopt-<br />
A-Road?<br />
Any contract will be signed for an initial period of one year.<br />
However, the idea is to make this a continual initiative so that<br />
Upper Hill’s road remain clean.<br />
12. How will property owners<br />
monitor the progress of the roads?<br />
• Step out of your building<br />
• Recycling reports<br />
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26<br />
from KPDA Partner<br />
from KPDA Partner<br />
align leadership, improve cross-sector collaboration, and build new models of inclusive governance to drive<br />
effective planning and project delivery.<br />
Cities now contribute to a vast and growing equity gap. Globally, a number of complex issues are<br />
colliding: income, education, and health disparities that sit at the root of social unrest; blight and ecological<br />
degradation; and the growing threat of climate change. Neighborhoods are the Soul & Lifeblood of the city.<br />
Sustainability Needs<br />
To Be Scaled From A<br />
Neighbourhood Level<br />
It has been a tradition in Kenya for developers to Master plan their development projects into gated<br />
communities and mixed-use developments-a recent phenomenal. Gated communities convey a sense of<br />
place and social exclusivity, perceptions the developers have capitalized on to fuel their greatest desire at<br />
this point which is to sell as many units as possible in the development and as fast as possible in order to<br />
move on to the next project development and so on.<br />
Now, when you take Nairobi as a benchmark and sift through property marketing material, you will notice the<br />
prominence of exclusivity in addition other unique selling features like security, internet & cable connectivity,<br />
sense of place, green infrastructure and sustainability features. This was not the case some years ago.<br />
<strong>The</strong>se selling propositions are an improvement to overcome deficiencies that have seen yesteryear flagship<br />
estates like Buruburu and Woodley end up in premature decay. Although property values have gone up with<br />
time in these neighbourhoods for example, these values have failed to reflect the true picture of what would<br />
have been their actual values at this point in time.<br />
As developers continue to build houses to cater for the housing deficit that currently plaques Kenya, they<br />
will have to integrate sustainability from a neighbourhood scale. Sustainability and resilience are becoming<br />
major drivers of property investment decision because of their ability to future proof real estate investments.<br />
With hundreds of millions of people moving into cities worldwide and trillions of shillings being spent to<br />
accommodate this growth over the next 30 years, Developers and investors should see this as a major<br />
opportunity to promote a range of neighborhood-scale sustainability best practices that simultaneously<br />
address equity, resilience, and climate protection.<br />
In order for sustainable neighbourhood to thrive, developers will have to look beyond the physical<br />
environment. <strong>The</strong>y will have to look at the people who live around their neighbourhood developments<br />
and those who will live in those upcoming neighbourhoods under their development. This will mean doing<br />
more than just having a facilities or property management company on board. Rather, it will necessitate<br />
establishing community engagement and governance structure for a development that will be able to<br />
address equity, resilience and climate protection. Developers will have to embrace and incorporate new<br />
models of urban regeneration to empower just, resilient, sustainable neighborhoods for all.<br />
This is because, for far too long, urban regeneration has been primarily about brick-and-mortar solutions<br />
to building and rehabilitating neighborhoods. <strong>The</strong> world of city building has drastically changed, and it<br />
requires a more diverse and more integrated range of solutions to empower social vibrancy and<br />
restore ecological health. Success hinges on building robust public-private-civic partnerships to<br />
Neighborhoods sit at the heart of some of the most complex challenges facing city makers today. But they<br />
can also become the building blocks of sustainable cities. Neighborhoods provide a uniquely valuable scale<br />
to introduce and accelerate investments that can achieve profound improvements in equity, resilience, and<br />
climate protection. Neighborhoods are the right scale to accelerate sustainability because they are small<br />
enough to innovate and big enough to leverage meaningful investment and public policy impact. How we<br />
build our cities — from the neighborhood up — is the biggest challenge of our lifetime.<br />
To foster this new model and era of urban regeneration and property development, developers will have<br />
to accept a new rigorous sustainable urban development framework for achieving people-centered,<br />
economically vibrant, planet-loving, neighborhood- and district-scale sustainability. Such a<br />
framework puts a comprehensive lens on every urban regeneration decision, drives the delivery of<br />
meaningful performance outcomes, and sets the conditions for sustainable, collective impact.<br />
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28<br />
from KPDA Partner<br />
Sustainability Needs To Be Scaled<br />
From A Neighbourhood Level<br />
Free Accreditation is now on until<br />
31st <strong>Mar</strong>ch <strong>2018</strong><br />
At the moment, some neighbourhoods in major cities in Kenya have already outlived their builders. <strong>The</strong><br />
builders are no longer there to witness the inefficiencies and inequalities their developments have left in their<br />
wake and the fertile grounds for avarice and corruption they created within the land development ecosystem.<br />
In conclusion, it is time that developers start to integrate performance-based frameworks like Green Star<br />
Communities to build resilience and sustainability in their neighbourhood-scale projects because that will be<br />
a key driver to strong sales. After the recent desertification warnings, property buyers will want to know tree<br />
cover ratio vis-à-vis a development, sustainability and other green infrastructure features before investing in<br />
certain properties. <strong>The</strong> investing public no longer want to buy into a neighbourhood development that will,<br />
in less than 15 years, end up like the Buruburus and Woodley estates that were the glamour estates of the<br />
early 1980s.<br />
<strong>The</strong> writer, John Kabuye Kalungi is a Building Surveyor<br />
and sustainability consultant at BESIC Group ltd. He<br />
is also the Vice Chairperson & Head of Advocacy<br />
Committee at the Kenya Green Building Society.<br />
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30<br />
Photo Gallery of 2017 KPDA Events<br />
Photo Gallery of 2017 KPDA Events<br />
KPDA Learning and Development Symposium<br />
at the Bowmans (Coulson Harney) Advocates –<br />
ICEA Lion Centre, West Wing on Monday 4th<br />
and Tuesday 5th December 2017<br />
<strong>The</strong>me: ‘<strong>The</strong> JBC Contract: What Every Developer Should Know’<br />
KPDA End of Year Corporate Networking<br />
Koroga Event at the Mint Shack Restaurant,<br />
Nairobi, Thursday, 19th October 2017<br />
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32<br />
Photo Gallery of 2017 KPDA Events<br />
Photo Gallery of 2017 KPDA Events<br />
KPDA End of Year Corporate Networking Koroga Event at the<br />
Mint Shack Restaurant, Nairobi, Thursday, 19th October 2017<br />
KPDA CEO Breakfast Forum at the Hotel Royal<br />
Orchid, Nairobi, Tuesday, 23rd May 2017<br />
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34<br />
Photo Gallery of 2017 KPDA Events<br />
Photo Gallery of 2017 KPDA Events<br />
KPDA CEO Breakfast Forum at the Hotel Royal Orchid,<br />
Nairobi, Tuesday, 23rd May 2017<br />
KPDA / MRM Meet and Greet Koroga Event<br />
at Koroga Country Club - Nyali, Mombasa,<br />
Thursday, 27th April 2017<br />
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36<br />
Photo Gallery of 2017 KPDA Events<br />
Photo Gallery of 2017 KPDA Events<br />
5th KPDA AGM and Koroga Event,<br />
Friday, 31st <strong>Mar</strong>ch 2017<br />
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38<br />
Photo Gallery of 2017 KPDA Events<br />
Photo Gallery of 2017 KPDA Events<br />
5th KPDA AGM and Koroga Event,<br />
Friday, 31st <strong>Mar</strong>ch 2017<br />
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40<br />
Photo Gallery of 2017 KPDA Events<br />
Photo Gallery of 2017 KPDA Events<br />
KPDA Learning and Development Symposium<br />
at the offices of Bowmans (Coulson Harney)<br />
Advocates – ICEA Lion Centre,<br />
Tuesday, 7th <strong>Mar</strong>ch 2017<br />
<strong>The</strong>me: ‘Understanding Construction Contracts’<br />
Construction Health and Safety Breakfast<br />
Forum at the Crowne Plaza Hotel, Nairobi,<br />
Tuesday, 21st February 2017<br />
<strong>The</strong>me: 'Occupational Health and Safety Standards<br />
in the Kenyan Construction Industry’<br />
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42<br />
Photo Gallery of 2017 KPDA Events<br />
NCCG Building Permitting Report – <strong>Jan</strong> – FEB <strong>2018</strong><br />
CEO Breakfast Forum at the Crowne Plaza<br />
Hotel, Nairobi, Tuesday, 17th <strong>Jan</strong>uary 2017<br />
<strong>The</strong>me: ‘Launch of the NCA Online Project<br />
Registration Platform’<br />
THE KPDA NAIROBI CITY<br />
COUNTY GOVERNMENT (NCCG)<br />
BUILDING PERMITTING<br />
APPROVALS REPORT<br />
JANUARY TO FEBRUARY <strong>2018</strong><br />
<strong>The</strong> value of<br />
approved permits<br />
(for the period<br />
<strong>Jan</strong>uary– February<br />
<strong>2018</strong>) represents<br />
over Kshs. 23.6<br />
billion worth<br />
of development<br />
projects and<br />
permitting fees<br />
collected were<br />
over Kshs. 134.9<br />
Million for the<br />
period <strong>Jan</strong>uary –<br />
February <strong>2018</strong><br />
<strong>The</strong> <strong>2018</strong> KPDA NCCG Building Permitting Approvals Activity Report provides a<br />
summary of statistical information on planning permitting activity in Nairobi for the<br />
period <strong>Jan</strong>uary to February <strong>2018</strong>. Only statistics received from the Nairobi City<br />
County Government, Urban Planning Department have been used as references.<br />
This report uses building permitting approval requests submitted to the<br />
Nairobi City County Government which are then analysed and approved<br />
by a specialist committee appointed by the Urban Planning Department<br />
of the Nairobi City County Government. <strong>The</strong> report contains information<br />
on applications that have been approved by the specialist committee<br />
highlighting development locations, types, values, application revenues<br />
and process performances.<br />
SUMMARY STATISTICS<br />
A total of 390 planning permit applications were approved from<br />
<strong>Jan</strong>uary to February <strong>2018</strong> with <strong>Jan</strong>uary having the highest<br />
number of approvals (232) and February having the least (158).<br />
Other key statistics from this report include:<br />
<strong>The</strong> value of approved permits (for the period <strong>Jan</strong>uary –<br />
February <strong>2018</strong>) represents over Kshs. 23.6 billion worth<br />
of development projects and permitting fees collected<br />
were over Kshs. 134.9 Million for the period <strong>Jan</strong>uary –<br />
February <strong>2018</strong>;<br />
During this period, the highest value of buildings<br />
submitted for approval was Kshs. 3,000,000,000 (Kshs. 3<br />
billion) by Soma Properties Ltd (Proposed Alterations And<br />
While every reasonable effort is made to ensure that the information<br />
provided in this report is accurate no guarantee for the currency or<br />
accuracy of information is made. <strong>The</strong> permitting data was provided to the<br />
KPDA by the Nairobi City County Physical Planning Department.<br />
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44<br />
NCCG Building Permitting Report – <strong>Jan</strong> – FEB <strong>2018</strong><br />
NCCG Building Permitting Report – <strong>Jan</strong> – FEB <strong>2018</strong><br />
Additions - Shops, New Lifts Wells, Fire Escapes<br />
Stairs, Washrooms & Loading Bays to App Plan<br />
Sarit Centre Shopping Mall) and the maximum<br />
submission fee paid was Kshs. 7,656,680 by Ever<br />
Forgarden Company Limited.<br />
On average the estimated value of building<br />
developments approved was Kshs. 60,462,689 and<br />
that of the submission fee was Kshs. 346,003.<br />
Based on the Kenyan Building Code of 1997,<br />
this report depicts permits that were issued in the<br />
PERMIT APPLICATION ACTIVITY BY SUB-COUNTY<br />
following average percentages in accordance to the<br />
named classifications below:<br />
• 78.2% (305) - Domestic Class (commercial<br />
developments, domestic buildings and offices)<br />
• 13.6% (53) - Public Class (social halls,<br />
religious buildings, libraries, schools, etc.)<br />
• 8.2% (32) - Warehouse Class (industries,<br />
factories, and go downs)<br />
<strong>The</strong> statistics show that approved proposed<br />
developments of the Domestic Classification had<br />
the highest level of approvals issued.<br />
BUILDING CLASS BY LOCALITY<br />
<strong>The</strong> graph indicates Karen<br />
being the area with the<br />
highest number of Domestic<br />
Class approvals. This signals<br />
a new settlement area for<br />
Nairobi’s residents.<br />
DWELLING RELATED ACTIVITY ACROSS NAIROBI<br />
Buildings approved included domestic<br />
buildings, commercial developments,<br />
offices, religious buildings, social halls,<br />
libraries, schools, factories, industries and<br />
go downs. <strong>The</strong> following graph identifies<br />
permit applications that relate to various<br />
building classes.<br />
<strong>The</strong> highest permits were approved in the areas of Westlands, Langata, Dagoretti North, Embakasi East,<br />
Roysambu and Kasarani.<br />
• Westlands has the highest percentage of permits locality-wise.<br />
• Dagoretti South, Makadara and Kamukunji have the least number of permits amongst the top<br />
10 areas of development.<br />
It can be noted that 78.21% of<br />
the planning submitted under<br />
the building class category were<br />
domestic class which includes<br />
domestic buildings, commercial<br />
developments and offices.<br />
While every reasonable effort is made to ensure that the information provided in this report is accurate no guarantee for the currency or<br />
accuracy of information is made. <strong>The</strong> permitting data was provided to the KPDA by the Nairobi City County Physical Planning Department.<br />
While every reasonable effort is made to ensure that the information provided in this report is accurate no guarantee for the currency or<br />
accuracy of information is made. <strong>The</strong> permitting data was provided to the KPDA by the Nairobi City County Physical Planning Department.<br />
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46<br />
NCCG Building Permitting Report – <strong>Jan</strong> – FEB <strong>2018</strong><br />
NCCG Building Permitting Report – <strong>Jan</strong> – FEB <strong>2018</strong><br />
NUMBER OF APPROVALS BY ZONAL USER DENSITY<br />
GRAPH DEPICTING VALUE OF PROJECTS APPROVED<br />
1. <strong>The</strong> Residential Class accounted for 78.46% of the approvals<br />
2. Commercial Class buildings accounted for 2.821% of the approvals<br />
3. Public Class buildings accounted for 11.28% of the total approvals<br />
4. ndustrial Class buildings accounted for 7.179% of the total approvals<br />
5. One development was unaccounted for (N/A) at 0.256%<br />
259 buildings presented for approvals were valued between Kshs.1 million and Kshs. 50 million while only<br />
1 building was valued over Kshs. 1 billion. Most of these buildings were in the residential category.<br />
GRAPH DEPICTING LENGTH OF TIME TAKEN FOR PROJECT APPROVALS<br />
GRAPH DEPICTING PERIOD OF APPROVALS ON A MONTHLY BASIS<br />
Most of the permits took<br />
less than a month to be<br />
approved.<br />
<strong>The</strong> Month of <strong>Jan</strong>uary<br />
had the highest number<br />
of approvals, with 232<br />
approvals and February<br />
had the lowest at 158.<br />
While every reasonable effort is made to ensure that the information provided in this report is accurate no guarantee for the currency or<br />
accuracy of information is made. <strong>The</strong> permitting data was provided to the KPDA by the Nairobi City County Physical Planning Department.<br />
While every reasonable effort is made to ensure that the information provided in this report is accurate no guarantee for the currency or<br />
accuracy of information is made. <strong>The</strong> permitting data was provided to the KPDA by the Nairobi City County Physical Planning Department.<br />
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48<br />
NCCG Building Permitting Report – <strong>Jan</strong> – FEB <strong>2018</strong><br />
NCCG Building Permitting Report – <strong>Jan</strong> – Dec 2017<br />
COMPARATIVE ANALYSIS BETWEEN THE TWO MONTHS OF JAN - FEB <strong>2018</strong><br />
MONTH<br />
JAN (KSHS)<br />
FEB(KSHS)<br />
ESTIMATED VALUE 13,502,513,826 10,077,935,149.40<br />
SUBMISSION FEE 73,827,473 61,113,934<br />
BUILDING<br />
CLASS<br />
APPROVALS<br />
DOMESTIC<br />
PUBLIC<br />
WAREHOUSE<br />
187<br />
29<br />
16<br />
Domestic buildings continue to have the highest number of approvals.<br />
118<br />
24<br />
16<br />
FOR MORE INFORMATION, KINDLY<br />
CONTACT THE KPDA SECRETARIAT<br />
Kenya Property Developers Association<br />
Fatima Flats, Suite 4B<br />
<strong>Mar</strong>cus Garvey Road<br />
Off Argwings Kodhek, Kilimani Area<br />
P. O. Box 76154 – 00508 Nairobi, Kenya<br />
Telephone: +254 737 530 290/0705 277 787<br />
Email: ceo@kpda.or.ke<br />
Website: www.kpda.or.ke<br />
THE KPDA NAIROBI CITY<br />
COUNTY GOVERNMENT (NCCG)<br />
BUILDING PERMITTING<br />
APPROVALS REPORT<br />
JANUARY TO DECEMBER 2017<br />
SOURCE<br />
<strong>The</strong> 2017 KPDA Building Permitting Activity Report provides a summary of<br />
statistical information on planning permitting activity in Nairobi from <strong>Jan</strong>uary to<br />
December 2017. During this reporting period, only statistics from the Nairobi City<br />
County Government are used as references. This report uses standardized<br />
data submitted to the Nairobi City County Government. <strong>The</strong> report highlights<br />
information on applications received, development locations, types and<br />
values, department revenue from applications and permit processing<br />
performance.<br />
STATISTICS<br />
A total of 2,120 building permit applications were approved from<br />
<strong>Jan</strong>uary to December 2017 with the last quarter having the highest<br />
number of approvals attributed to the long electioneering period.<br />
Other key statistics from this report include:<br />
Value of approved permits represents over Kshs.108.7<br />
billion (108,666,025,515) worth of development projects and<br />
permitting fees collected were Kshs.951.99 Million (951, 987,<br />
789.1);<br />
During 2017 the highest valued building submitted<br />
for approval stood at Kshs. 5,367,000,000 (Proposed<br />
amendment to mixed development) by Rossyln Property<br />
Holdings Ltd and the maximum submission fee paid was<br />
Kshs. 57,658,610.<br />
While every reasonable effort is made to ensure that the information provided in this report is accurate no guarantee for the currency or<br />
accuracy of information is made. <strong>The</strong> permitting data was provided to the KPDA by the Nairobi City County Physical Planning Department.<br />
BRITAM Towers, Nairobi<br />
While every reasonable effort is made to ensure that the information<br />
provided in this report is accurate no guarantee for the currency or accuracy<br />
of information is made. <strong>The</strong> permitting data was provided to the KPDA by the<br />
Nairobi City County Physical Planning Department.<br />
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NCCG Building Permitting Report – <strong>Jan</strong> – Dec 2017 NCCG Building Permitting Report – <strong>Jan</strong> – Dec 2017<br />
On average the estimated value of building<br />
developments approved was Kshs. 51,281,749 and<br />
that of the submission fee was Kshs. 450,538.<br />
Building permits that were issued in accordance<br />
to the named classifications below:<br />
• 80.1% (1699) - Domestic Class (commercial<br />
developments, domestic buildings and offices)<br />
• 11.2% (237) - Public Class (social halls,<br />
religious buildings, libraries, schools, etc.)<br />
PERMIT APPLICATION ACTIVITY BY SUB-COUNTY<br />
• 8.7% (184) - Warehouse Class (industries,<br />
factories, and go downs)<br />
<strong>The</strong> statistics show that in the year 2017 Domestic<br />
classifications were most approved proposed<br />
developments due to the ever increasing need<br />
for housing by Kenyans and especially affordable<br />
housing and ownership of homes by the middle<br />
class.<br />
DWELLING RELATED ACTIVITY ACROSS NAIROBI<br />
Buildings approved included<br />
domestic buildings, commercial<br />
developments, offices, religious<br />
buildings, social halls, libraries,<br />
schools, factories, industries<br />
and go downs. <strong>The</strong> following<br />
graph identifies permit<br />
applications that relate to<br />
various building classes.<br />
It can be noted that 80.14% of<br />
the planning submitted under<br />
the building class category were<br />
domestic class which includes<br />
domestic buildings, commercial<br />
developments and offices.<br />
BUILDING CLASS BY LOCALITY<br />
<strong>The</strong> highest permits were approved in the areas of Karen, Westlands, Lang’ata, Starehe and Roysambu.<br />
• Karen has the highest percentage of permits locality-wise. This is as a result of the revised zoning<br />
policy that allowed construction of apartments.<br />
• <strong>The</strong> Neighborhood has an organized road network, with the Southern Bypass being the key. <strong>The</strong><br />
high number of permits in the Karen area are also very likely due to the fact that rent or property<br />
owning in Karen attracts high revenue. This is a likely factor that developers considered in achieving<br />
better return on capital;<br />
• Muthaiga had the least number of permits amongst the top 18 areas of development regardless of<br />
being very close to the CBD. Embakasi, Mathare and Kibra areas attracted fewer developments due<br />
to traffic and building congestion and civil unrest especially during the election period.<br />
<strong>The</strong> highest<br />
development<br />
permits in the<br />
year 2017 were<br />
approved in Karen,<br />
Industrial Area,<br />
Westlands, Runda<br />
and Eastleigh<br />
with domestic<br />
infrastructures<br />
dominating in these<br />
areas except from<br />
the Industrial area<br />
where most of<br />
them were factories<br />
and warehouses.<br />
While every reasonable effort is made to ensure that the information provided in this report is accurate no guarantee for the currency or<br />
accuracy of information is made. <strong>The</strong> permitting data was provided to the KPDA by the Nairobi City County Physical Planning Department.<br />
While every reasonable effort is made to ensure that the information provided in this report is accurate no guarantee for the currency or<br />
accuracy of information is made. <strong>The</strong> permitting data was provided to the KPDA by the Nairobi City County Physical Planning Department.<br />
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52<br />
NCCG Building Permitting Report – <strong>Jan</strong> – Dec 2017 NCCG Building Permitting Report – <strong>Jan</strong> – Dec 2017<br />
NUMBER OF APPROVALS BY ZONAL USER DENSITY<br />
MONTHLY PERMIT PROCESSING GRAPH<br />
<strong>The</strong> Residential Class accounted<br />
for 74.91% of the approvals due<br />
to an increase in the middle aged<br />
working population who consider<br />
owning a home more crucial than<br />
renting one and also high demand<br />
by Kenyans to own homes. Most<br />
of developers have invested more<br />
on Residential developments which<br />
are more profitable due to the<br />
growing demand. <strong>The</strong>re has been<br />
an improvement in security within<br />
the nation which has resulted in an<br />
influx in foreign residents in Kenya<br />
thus increasing the demand for<br />
residential houses (in particular wellfurnished<br />
residential infrastructures)<br />
mostly in the high end areas.<br />
Commercial Class buildings<br />
accounted for 4.67% of the<br />
approvals.<br />
• <strong>The</strong> Month of<br />
November recorded<br />
the highest number of<br />
approvals, with 363<br />
approvals.<br />
• <strong>Jan</strong>uary recorded the<br />
highest number of<br />
approvals in the first<br />
quarter.<br />
• <strong>The</strong>re were no<br />
permitting in the<br />
months of August,<br />
September and<br />
October due to the<br />
electioneering period.<br />
This explains the high<br />
number of permitting<br />
that took place in<br />
November as there<br />
was a backlog.<br />
THE VALUE OF BUILDING PERMITTED BY THE NAIROBI CITY COUNTY GOVERNMENT<br />
APPROVAL RATE BY THE NAIROBI CITY COUNTY GOVERNMENT<br />
TO CARRY OUT BUILDING PERMITTING<br />
60.17% of the<br />
buildings presented<br />
for approval were<br />
valued between<br />
five million and one<br />
hundred million.<br />
Only a paltry 0.28%<br />
of the buildings<br />
were above one<br />
billion shillings.<br />
It took more than a<br />
month for most of<br />
the building permit<br />
applications to<br />
be approved with<br />
most being done<br />
between 31 and 90<br />
days. This delay<br />
in the approval<br />
process can be<br />
attributed to the<br />
long election period<br />
witnessed last year.<br />
While every reasonable effort is made to ensure that the information provided in this report is accurate no guarantee for the currency or<br />
accuracy of information is made. <strong>The</strong> permitting data was provided to the KPDA by the Nairobi City County Physical Planning Department.<br />
While every reasonable effort is made to ensure that the information provided in this report is accurate no guarantee for the currency or<br />
accuracy of information is made. <strong>The</strong> permitting data was provided to the KPDA by the Nairobi City County Physical Planning Department.<br />
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NCCG Building Permitting Report – <strong>Jan</strong> – Dec 2017<br />
NUMBER OF APPROVALS BY ZONAL USER DENSITY<br />
-<br />
SUBMISSION FEE<br />
ESTIMATED VALUE<br />
BUILDING<br />
CLASS<br />
APPROVALS<br />
600<br />
500<br />
400<br />
300<br />
200<br />
100<br />
0<br />
426<br />
DOMESTIC<br />
PUBLIC<br />
WAREHOUSE<br />
2017 QUARTERS<br />
1 st QUARTER 2 nd QUARTER 3 rd QUARTER 4 th QUARTER<br />
Kshs241,603,260<br />
426<br />
54<br />
53<br />
Kshs251,512,600.1<br />
487<br />
60<br />
50<br />
Kshs203,200,176<br />
Kshs255,671,753<br />
Kshs25,925,816,662 Kshs27,303,406,213 Kshs20,826,088,818 Kshs34,610,713,822<br />
<strong>The</strong> highest estimated value was recorded during the October to December quarter<br />
of the year with the least average value being July to September Quarter.<br />
Building Class Approvals by Quarters<br />
487<br />
54 53 60 50<br />
Building Class TOTAL<br />
D P W<br />
Q1 426 54 53 533<br />
Q2 487 60 50 597<br />
Quarter<br />
235 32 23 290<br />
Q3<br />
551 91 58 700<br />
Q4<br />
TOTAL 1699 237 184 2120<br />
235<br />
Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible<br />
551<br />
Q1 Q2 Q3 Q4<br />
D P W<br />
32<br />
23<br />
91<br />
58<br />
235<br />
32<br />
23<br />
552<br />
91<br />
58<br />
Domestic buildings have<br />
the highest number of<br />
approvals and most were<br />
approved in the fourth<br />
quarter (551). Public<br />
amenities such as social<br />
halls came in second<br />
with most approvals<br />
taking place in the fourth<br />
quarter (91).<br />
FOR MORE INFORMATION,<br />
KINDLY CONTACT THE<br />
KPDA SECRETARIAT<br />
Kenya Property<br />
Developers Association<br />
Fatima Flats, Suite 4B<br />
<strong>Mar</strong>cus Garvey Road<br />
Off Argwings Kodhek,<br />
Kilimani Area<br />
P. O. Box 76154 – 00508<br />
Nairobi, Kenya<br />
Telephone: +254 737 530<br />
290/0705 277 787<br />
Email: ceo@kpda.or.ke<br />
Website: www.kpda.or.ke<br />
While every reasonable effort is made to ensure that the information provided in this report is accurate no guarantee for the currency or<br />
accuracy of information is made. <strong>The</strong> permitting data was provided to the KPDA by the Nairobi City County Physical Planning Department.<br />
THE KENYA PROPERTY DEVELOPERS ASSOCIATION<br />
POLICY POSITION PAPER MATRIX, <strong>2018</strong><br />
NO. ISSUE (S) PROPOSED SOLUTION (S) ACTION (S) BEING<br />
TAKEN/PROGRESS<br />
REPORT<br />
1. LAND REFORMS<br />
a. Lack of efficiency and<br />
corruption in land<br />
processes<br />
b. Pending Policy, Legal and<br />
Institutional Reforms<br />
c. Lack of land reforms<br />
d. Lack of adherence to<br />
service charters<br />
2. URBANIZATION ISSUES<br />
Integrated Development<br />
Plans<br />
1. Complete the modernization of all the Land<br />
Registries;<br />
2. Provide direction on the change of user process;<br />
3. Develop, implement and operationalize the<br />
National Land Information Management System<br />
(NLIMS);<br />
4. Complete and operationalize the CORS and<br />
modernize the Geodetic Reference Framework;<br />
5. Develop, complete and operationalize the National<br />
Land Use Policy and where necessary realign or<br />
develop relevant legislations;<br />
6. Complete the updating of topographical maps;<br />
7. Completion of the development of the land law<br />
regulations to operationalize the Land Registration<br />
Act 2012, Community Land Act and the Land Act<br />
2012;<br />
8. Anchor the 2009 Revised Building Code in an Act;<br />
9. Complete the Land Valuation Index Act;<br />
10. Provide direction on Extension and<br />
Renewal of Land Leases;<br />
11. Complete the Land Adjudication Program and issue<br />
relevant land titles;<br />
12. <strong>The</strong> Central Project Planning Unit of the Ministry<br />
work with the private sector to address the issue of<br />
strengthening monitoring and evaluation (M & E);<br />
13. Review the 1987 Sectional Properties Act and the<br />
National Land Policy;<br />
14. Fast track the Physical Planning Bill;<br />
15. Develop Regulations for the Land Laws Amendment<br />
Act, Community Land Act and Land Registration<br />
Act;<br />
16. Develop a Land Valuation Index;<br />
17. Review the Survey Act CAP 299;<br />
18. Review the Valuers Act CAP 532;<br />
19. Review the Estates Agents Act CAP 533.<br />
i. Lack of adequate human resources in terms of<br />
professionals in the counties<br />
ii. Lack of prioritization of the issue by Country<br />
Governments<br />
i. Develop a technical<br />
assistance and<br />
support programme<br />
to County<br />
Governments in<br />
planning,<br />
urbanisation and<br />
infrastructure<br />
development<br />
ii. Establish the status<br />
of Physical<br />
Development Plans<br />
for Resort Cities<br />
Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible
54<br />
3. HOUSING ISSUES<br />
a. Lack of adequate housing<br />
for Kenyans<br />
b. Lack of an adequate<br />
number of affordable<br />
houses<br />
c. Lack of adequate policy,<br />
legal and institutional<br />
reforms<br />
d. Lack of uptake of REITs<br />
in Kenya<br />
4. COUNTY GOVERNMENT ISSUES<br />
a. Incomplete Nairobi City<br />
County Zoning Policy<br />
b. Counties lack Spatial<br />
Plans<br />
1. Jointly lobby for changes to the Act (proposal to<br />
apply for exemption of special purposes vehicles<br />
owned by REITS which CMA is now taking up with<br />
KRA)<br />
2. Develop and implement innovative housing finance<br />
issues<br />
3. Establish a secondary Mortgage Finance Corporation<br />
4. Development of the Metropolitan Policy<br />
5. Implementation of the Sessional Paper No. 3 of 2012<br />
on Population Policy for National Development<br />
6. Formulation and implementation of the Urban<br />
Development Policy<br />
7. Review and harmonization of legal and institutional<br />
framework governing urbanization<br />
8. Enactment of the amendments of the Urban Areas<br />
and Cities Act No. 13 of 2011<br />
9. Enactment of the Urban Areas and Cities<br />
Amendment Bill 2015<br />
10. Creation of the Urban Development Fund<br />
11. Creation of the Nairobi Metropolitan Transport<br />
Authority (NAMATA)<br />
12. Continue to develop supportive legislation and<br />
implementation of the National Housing Policy No. 3<br />
of 2004<br />
13. Enactment of the Housing Bill 2017<br />
14. Review and adoption of the National Building<br />
Maintenance Policy 2012<br />
15. Adoption of the National Building Regulations 2012<br />
to replace the Building Code<br />
16. Formulation of the following policies; National Slum<br />
Prevention and Upgrading Policy, Housing<br />
Infrastructure Framework, Leasing and<br />
Accommodation<br />
17. Establishment of the National Housing Development<br />
Fund<br />
18. Enactment of the Built Environment Bill 2012<br />
19. Enactment of the Landlord and Tenant Bill<br />
1. Implement the National Spatial Plan;<br />
2. Complete and implement County Spatial Plans and<br />
to ensure that they are in line with the National<br />
Spatial Plan and provide necessary legislation;<br />
iii. Continued<br />
development of the<br />
24 hour economy<br />
5. TAX AND TAX ADMINISTRATION ISSUES<br />
Poor administration of taxes 1. Remove or lower VAT on sale of commercial<br />
property<br />
2. Exempt Capital Gains Tax for transactions between<br />
related parties.<br />
3. Remove/lower compensating tax for developers<br />
4. Tax incentives for affordable housing (list from the<br />
taskforce)<br />
For more information, kindly contact the Membership Relations Officer, Cynthia Wakio through the<br />
telephone number 0737 530 290 or 0705 277 787 or by email membership@kpda.or.ke.<br />
Towards Real Estate Development that is Value Driven, Sustainable and Socially Responsible